How to Use a Gift Card for In-Store and Online Purchases

Gift cards serve as a versatile payment method, offering convenience for everyday purchases or as a flexible gifting option. They function as a pre-loaded form of currency, allowing recipients to choose items they desire from a specific retailer or a broader network of merchants. This guide aims to clarify the steps involved in using gift cards for both in-store and online shopping.

Preparing Your Gift Card for Use

Some gift cards require activation, which can typically be completed online by visiting the issuer’s website, via a toll-free phone number provided on the card or packaging, or automatically at the time of purchase by the cashier. Checking for activation instructions on the card itself or its accompanying materials helps confirm readiness.

Another important preparatory step involves verifying the current balance on the gift card. Knowing the exact amount available prevents issues at checkout and allows for better planning of your purchase. Most gift card issuers provide multiple ways to check balances, including dedicated websites, automated phone systems, or by inquiring at a customer service desk in a physical store location.

Using a Gift Card for Purchases

When shopping at a physical retail store, present the gift card to the cashier at the time of checkout. The cashier will typically swipe the card through a payment terminal, or you may need to insert it yourself. If prompted, enter the four-digit Personal Identification Number (PIN) found on the back of the card, often concealed under a scratch-off strip.

If your purchase exceeds the available balance on the gift card, inform the cashier that you wish to split the payment. The gift card’s balance will be applied first, reducing the total amount owed, and the remaining balance can then be paid using another method, such as a debit card, credit card, or cash.

For online purchases, the process involves locating the designated gift card entry fields during the checkout phase of the website. These fields are usually labeled “Gift Card Number,” “Redemption Code,” or similar terms. You will typically need to enter the full gift card number and a security code, often referred to as a CVV or CID, which is a three or four-digit number usually found on the back of the card. Some online systems may also require the PIN.

Should your online order total more than the gift card’s value, the website will usually prompt you to add an additional payment method to cover the difference. It is important to review all entered details before finalizing the order to ensure accuracy.

Navigating Common Gift Card Conditions

Many gift cards, particularly those issued by banks or general-purpose cards, are subject to federal regulations that require them to remain valid for at least five years from the date of issuance or the last time funds were added. While store-specific gift cards may have different policies, checking the fine print on the card or its packaging will reveal any specific expiration dates.

Some gift cards may carry certain fees, though federal law limits their imposition. For instance, dormancy fees, also known as inactivity fees, can only be charged if the card has not been used for at least 12 consecutive months, and typically only one such fee may be charged per month. Activation fees, if applicable, are generally charged at the time of purchase.

Gift cards can also come with restrictions on their use. Some might be limited to specific categories of merchandise, while others may not be redeemable for cash or at third-party vendors operating within a larger store. It is also common for most gift cards to be non-reloadable, meaning once the balance is depleted, the card cannot be refilled with additional funds unless explicitly stated by the issuer. These conditions are usually detailed on the card itself or on the issuer’s website.

Addressing Issues During Use

If your gift card is declined during a transaction, first reconfirm the balance to ensure sufficient funds are available for the purchase. Verify that the card has been properly activated and that all entered numbers, including the card number, security code, and PIN, are correct. Sometimes, a technical issue at the point of sale or with the online payment system can also cause a decline.

In the unfortunate event that a gift card is lost or stolen, immediate action is advisable, though recovery is not always guaranteed. Contact the card issuer or the retailer directly, providing them with any available details such as the card number, activation receipt, or proof of purchase. While many gift cards are treated like cash and cannot be replaced, some issuers may offer replacement if the card was registered or if you have the original purchase documentation.

After making a purchase, you might find a small unused balance remaining on your gift card. Many retailers allow you to use this remaining balance for a subsequent, smaller purchase. Some jurisdictions may also require merchants to provide cash back for small remaining balances, typically under a certain dollar amount, though this varies by state and is not universally mandated. Always check the store’s policy or local regulations regarding residual balances.